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E-wallets close in on debit cards in cashless transaction volumes
Debit cards accounted for 54.6 percent of cashless transactions in July, while electronic money accounted for another 42.6 percent and credit cards the remaining 2.8 percent.
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An employee tops up an electronic money (e-card) at a Mandiri building in Jakarta. Bank Indonesia's latest data show e-wallets contributed 42.6 percent of cashless transaction volume in July. (Antara/ Rivan Awal Lingga)
E
-wallets are gaining further traction in Indonesia, although debit cards continue to dominate the country’s cashless transactions.
According to the latest data issued by Bank Indonesia (BI), the debit cards contributed more than half of all cashless transactions in July, holding onto the lion’s share of such transactions by volume. Interestingly, despite the dominance of the debit card, e-wallets gained the second largest share in the same month.
The data shows that 54.6 percent of cashless transactions in July were done using debit cards, while a very close 42.6 percent was by electronic money. The remaining 2.8 percent was done with credit cards.
Electronic money of e-wallet transactions comprise those using e-money cards such as BCA Flazz and Mandiri e-money, as well as those using e-wallet applications such as Go-Pay, OVO and LinkAja.
“Electronic money transactions continue to rise, especially in early 2018, following its rapid adoption in digital ecosystems and its compulsory usage on toll roads,” BI macroprudential policy department head Filianingsih Hendarta told The Jakarta Post in a text message on Oct. 1.
She was referring to the rise of Go-Jek, Grab, Tokopedia, Traveloka, among other e-commerce platforms, which will be a $133 billion industry by 2025, according to a Google-Temasek report released on Friday, last week.
However, debit cards virtually monopolize cashless transactions in terms of monetary value with a 94 percent share of the Rp 717.3 trillion ($50.7 billion) circulated in July. Credit cards, which held a 4.2 percent share, outranked electronic money, which held 1.8 percent, BI data shows.
